ITC mulls foraying into healthcare space

New Delhi, Jan 27: Diversified conglomerate ITC will foray into the healthcare sector as it gears up to meet its ambition to be India's most valuable corporations.

While the company has not spelt out the specific details, it plans to seek shareholders' approval for venturing into the healthcare sector.

The board of directors of the company at its meeting held on Thursday recommended seeking approval from its shareholders for an alteration of the objects of the clause of its Memorandum of Association to include 'Healthcare', ITC said in a regulatory filing.

It further said the approval from the shareholders would be taken by means of postal ballot and e-voting.

The Kolkata-based firm is striving to position itself as one of India's most valuable corporations "through world class performance, creating growing value for the Indian economy and the company's stakeholders".

For its FMCG business, the company has set an ambitious target of Rs 1 lakh crore revenue from this segment by 2030 and it is looking to create "world-class Indian brands" by leveraging on its enterprise strengths.

In 2015-16, ITC's total FMCG business had a consolidated revenue of Rs 28,409.83 crore in which cigarettes contributed Rs 18,685.98 crore and non-cigarettes at Rs 9,723.85 crore.

The Kolkata-headquartered company is looking to expand footprints in existing as well as new categories, such as fresh fruits, vegetables and sea foods businesses, to meet the "audacious" goal that it has set for itself.

Sanjiv Puri, who is slated to take over as the CEO of the company, had earlier in an interview told that ITC's "aspiration is to create world class Indian brands and create intellectual assets for the nation" by leveraging on its enterprise strengths.

He had stated that while the company would continue to expand footprints in the existing categories, it would also get into new categories.

Only in India the healthcare financing is very small when compared to the financing by the other forces rather than the patient himself or herself paying out of pocket. Having 70-75% of the expenses as out-of-pocket, in my opinion, is not a right approach to managing healthcare in a country where the patients tend to sub-optimally purchase healthcare if he/she has to pay out-of-pocket.